Competition forces change of strategy in

Etisalat

Four years ago it appeared that nothing could push Etisalat off its pedestal.

The telecommunications operator held a virtual monopoly on the UAE's mobile phone, land-line
and internet market, much to the chagrin of many customers who griped about the company's
significantly high costs.

All that changed the following year when the upstart operator du entered the market, offering
mobile services across the UAE and internet packages in select areas of Dubai.

Since then, du has steadily gained on Etisalat, winning an increasing number of mobile
customers. And it stands to capture a large piece of the internet and television market once the
operators acquire the ability to share networks early next year.

Despite leading the way in the UAE's telecoms market, competition has begun to chip away at
Etisalat's revenues. That picture became clearer when the operator posted its bond prospectus
before issuing its US$1 billion (Dh3.67bn) sukuk on the London Stock Exchange.

Etisalat's mobile operation in the UAE is its most lucrative business, yet it is also its most
vulnerable.

The company's share of the domestic mobile market is about 63 per cent, with flat subscriber
growth adding only 10,000 new mobile customers in the third quarter. By comparison, du added
159,800 new customers to its mobile business in the last quarter, and now has about 37 per cent
of the market.

"[du was] coming into a market where prices were very high and it's been pretty easy for them.
Quite frankly, you'd have to be really bad not to take a decent share from a market which is that
lucrative," said Martin Mabbutt, an analyst with Nomura Securities in London.
"You can do two things as an incumbent. You can decide to try to keep a decent amount of
market share and drop prices, or you can decide to lose a bit of market share and keep pricing
reasonably high in your legacy base."

Etisalat's monthly average revenue per user (ARPU) figures, a key financial measure in the
telecoms business, has also been affected by the competition, decreasing from Dh176 in 2007 to
Dh118 in the most recent quarter.

Etisalat's mobile business has also suffered from a high rate of "churn", the number of customers
that have left the operator.

Although it is not clear how many of Etisalat's customers have signed up with du or left the
country entirely, Etisalat's churn rate rose from 15 per cent in 2007 to 25 per cent last year. It has
since declined to 17 per cent in the first nine months of this year.

Along with competition from du, Etisalat has also been affected by Voice over Internet Protocol
(VoIP), a technology banned in the UAE. Although rates vary throughout the world, VoIP is cited
as the main reason that Etisalat's customers made 10 per cent fewer international calls between
2008 and last year.

"If customers continue to utilise illegal and unlicensed VoIP services and/or if Etisalat cannot
offer competitive [international calling] rates compared with its international and local
competitors, this may have a material adverse effect on its business," said Etisalat in its
prospectus.

To counter this trend, Etisalat says it will "focus on introducing more value-added services, such
as specialised media content and enhanced mobile internet services", to help it increase its
revenue from data services and offset the decline from its ARPU.

To mitigate the fortunes it is experiencing at home, Etisalat is casting its net across the Middle
East, Africa and Asia. Using its financial clout, it has invested in 17 countries and now has about
94.7 million customers beyond its domestic base.
And its international operations are beginning to pay off. Led primarily from its Egyptian
subsidiary, these revenues contributed Dh5.2bn, or 22.5 per cent, of Etisalat's profit in the first
nine months of this year, an increase from Dh3.4bn, or 14.5 per cent, on the same period last
year.

Etisalat's new strategy was confirmed last month with its offer to buy Zain of Kuwait for $11bn,
or 1.7 Kuwaiti dinars per share. While Etisalat will issue $8bn in bonds to help finance the deal,
which is expected to close in the first quarter of next year, it should benefit by leveraging its
scale in building telecoms networks and procuring handset devices

"The lifeblood to telecoms operators is international expansion," said Mr Mabbutt. "Etisalat's

been the most aggressive, or at least the most expansionary, out of any of the Middle East
operators. The Zain deal makes it into a big player and the most significant player in the region."

Etisalat officials declined to comment.

dgeorgecosh@thenational.ae

ETISALAT MILESTONES

1976: Etisalat is established as the UAE’s main telecommunications operator, enjoying a

monopoly on mobile, internet and fixed-line services.

2004: The company makes its first international venture after it is awarded a mobile licence in
Saudi Arabia for US$3.25 billion (Dh11.93bn)

2005: Etisalat acquires a 50 per cent stake in Atlantique Telecom, a company with operations in
Benin, Burkina Faso, Togo, Niger, Central African Republic, Gabon and Ivory Coast. Etisalat
purchased the operator outright in February this year.

2006: In May, Etisalat establishes a subsidiary in Afghanistan after paying $1.2bn for a licence.
In August, Etisalat is awarded a licence to operate in Egypt for 16.7bn Egyptian pounds
(Dh10.66bn) and begins operating as the country’s third mobile operator under the Etisalat Misr
brand one year later.

2006: Etisalat acquires a 26 per cent stake in Pakistan Telecommunication Company for $2.56bn
in October that includes a premium for management control.

2007: In February, du begins operations, offering mobile services across the UAE and internet
packages in select areas of Dubai.
2007: Etisalat takes a 16 per cent stake in the Indonesian mobile operator XL Axiata for $438
million in December.

2009: Etisalat buys a 45 per cent stake in Swan Telecom, a mobile operator in India, for $900m.
The deal includes management control of the company, later renamed as Etisalat DB India. In
October, Etisalat acquires Tigo, a Sri Lankan operator, for $207m.

2010: Etisalat makes a $11bn offer for Zain, the Kuwaiti company that has operations in eight
countries across the MENA region, with more than 37 million subscribers.

* compiled by David George-Cosh

Marketing Strategy

The marketing concept of building an organization around the profitable satisfaction of

customer needs has helped firms to achieve success in high-growth, moderately
competitive markets. However, to be successful in markets in which economic growth
has leveled and in which there exist many competitors who follow the marketing
concept, a well-developed marketing strategy is required. Such a strategy considers a
portfolio of products and takes into account the anticipated moves of competitors in the
market.

The Case of Barco

In late 1989, Barco N.V.'s projection systems division was faced with Sony's surprise
introduction of a better graphics projector. Barco had been perceived as a leader,
introducing high quality products first and targeting a niche market that was willing to
pay a higher price. Being a smaller company, Barco could not compete on price, so it
traditionally pursued a skimming strategy in the graphics projector market, where it had
a 55% market share of the small market. Barco's overall market share for all types of
projectors was only 4%.

Even though Barco's market was mainly in graphics projectors, the company had not
introduced a new graphics projector in over two years. Instead, it was spending a large
portion of its R&D budget on video projector products. However, video projectors were
not Barco's market.

Barco's engineers had been working long hours on their new projector that would not be
as good as Sony's. Some people thought they should not stop work on that product
since the engineers' morale would suffer after being told how important it was to work
hard to get the product out. However, even considering the morale of the product team,
it would not have been a good idea to introduce a product that was inferior to that of
Sony. Barco wisely stopped working on the inferior product and put a major effort in
developing a projector that outperformed Sony's.

The Barco case illustrates several marketing strategy concepts:

 Price / Selling Effort Strategies: A firm that follows a skimming strategy seeks to
be the first to introduce a product with very good performance, selling it to the
innovator market segment and charging a premium price for it. It makes as much
profit as possible, then moves on when the competition arrives. The price is likely
to fall over time as competition is encountered. Such a skimming strategy
contrasts with a penetrating strategy, which seeks to gain market share by
sacrificing short-term profits, and increasing the price over time as market share
is gained.
 Competitors have certain strengths and abilities. To succeed, a firm must
leverage its own unique abilities.
 A firm should prepare defensive strategies before potential threats arrive. If the
competition surprises a firm with the introduction of a vastly superior product, the
firm should resist the temptation to proceed with its mediocre product. A firm
never should introduce a product that is obsolete when it hits the market.
 The competition's probable response to a firm's actions should be considered
carefully.

Marketing Research for Strategic Decision Making

The two most common uses of marketing research are for diagnostic analysis to
understand the market and the firm's current performance, and opportunity analysis to
define any unexploited opportunities for growth. Marketing research studies include
consumer studies, distribution studies, semantic scaling, multidimensional scaling,
intelligence studies, projections, and conjoint analysis. A few of these are outlined
below.

 Semantic scaling: a very simple rating of how consumers perceive the physical
attributes of a product, and what the ideal values of those attributes would be.
Semantic scaling is not very accurate since the consumers are polled according
to an ordinal ranking so mathematical averaging is not possible. For example, 8
is not necessarily twice as much as 4 in an ordinal ranking system. Furthermore,
each person uses the scale differently.
 Multidimensional scaling (MDS) addresses the problems associated with
semantic scaling by polling the consumer for pair-wise comparisons between
products or between one product and the ideal. The assumption is that while
people cannot report reliably which attributes drive their choices, they can report
perceptions of similarities between brands. However, MDS analyses do not
indicate the relative importance between attributes.
 Conjoint analysis infers the relative importance of attributes by presenting
consumers with a set of features of two hypothetical products and asking them
which product they prefer. This question is repeated over several sets of attribute
values. The results allow one to predict which attributes are the more important,
the combination of attribute values that is the most preferred. From this
information, the expected market share of a given design can be estimated.

Multi-Product Resource Allocation

The most common resource allocation methods are:

 Percentage of sales
 Executive judgement
 All-you-can-afford
 Match competitors
 Last year based

Another method is called decision calculus. Managers are asked four questions:

What would sales be with:

1. no sales force
2. half the current effort
3. 50% greater effort
4. a saturation level of effort.
From these answers, one can determine the parameters of the S-curve response
function and use linear programming techniques to determine resource allocations.

Decision algorithms that result in extreme solutions, such as allocating most of the sales
force to one product while neglecting another product often do not yield practical
solutions.

For mature products, sales increase very little as a function of advertising expenditures.
For newer products however, there is a very positive correlation.

Portfolio models may be used to allocate resources among major product lines or
business units. The BCG growth-share matrix is one such model.

New Product Diffusion Curve

As a new product diffuses into the market, some types of consumers such as innovators
and early adopters buy the product before other consumers. The product adoption
follows a trajectory that is shaped like a bell curve and is known as the product diffusion
curve. The marketing strategy should take this adoption curve into account and address
factors that influence the rate of adoption by the different types of consumers.

Dynamic Product Management Strategies

Two fundamental issues of product management are whether to pioneer or follow, and
how to manage the product over its life cycle.

Order of market entry is very important. In fact, the forecasted market share relative to
the pioneering brand is the pioneering brand's share divided by the square root of the
order of entry. For example, the brand that entered third is forecasted to have 1/√3
times the market share of the first entrant (Marketing Science, Vol. 14, No. 3, Part 2 of
2, 1995.) This rule was determined empirically.

The pioneering advantage is obtained from both the supply and demand side. From the
supply side, there are raw material advantages, better experience effects to provide a
cost advantage, and channel preemption. On the demand side, there is the advantage
of familiarity, the chance to set a standard, and the choice of perceptual position.

Once a firm gains a pioneering advantage, it can maintain it by improving the product,
creating a standard, advertise that it was the first, and introduce a new product in the
market that may cannibalize the first but deter other firms from entering.
There also are disadvantages to being the pioneer. Being first allows a competitor to
leapfrog the early technology. The incumbent develops inertia in its R&D and may not
be a flexible as newcomers. Developing an industry has costs that the pioneer must
bear alone, and the way the industry develops and its potential size are not
deterministic.

There are four classic price/selling effort strategies:

Late entrant strategies for Visafone and

Etisalat Nigeria

As the newly licensed cdma and Gsm operators commences roll out, indications are very strong that
their might be some displacement in the Nigerian Telecoms Race. Clear favorites and pioneers like Mtn,
Celtel and Glo are poised to face stiff competition from late entrants, Etisalat, Alheri and Visafone.

Ordinarily, Visafone should not be classified as a major threat since they will operate in the CDMA range
but the class of additional license(800Mhz spectrum) that was bought after taking over cellcom, places
the company in good position to provide some unique services and Coupled with the speedy roll out
plans and the pedigree of the chief promoter, Mr Jim Ovia.Visafone is presently offering Very reliable and
fast internet in the Nigeria Mobile space.
Etisalat is a clear leader with innovative products with foot prints in the Middle East market and many
years of Experience and good financial position. They are a formidable organization.
Little known Alheri is backed by Nigeria’s leading Business magnate,Alhaji Aliko Dangote. This will be his
first known foray into the rewarding Nigeria Telecoms market. Despite the seemingly little dog status in
the telecoms market, they possibly have what it takes to challenge the dominance of the big operators.
Alheri, holds a 3G license which enables an operator to engage in more data intensive applications and
the backers also have deep pockets.

Early and dominant operators provides a significant and sustained market-share advantage over later
entrants. Still, later entrants can succeed by adopting distinctive positioning and marketing strategies.
Experience has shown that in the Nigerian Telecoms market, innovations and financial muscles is a major
factor for acquiring subscribers. Late entrant Globalcom is an example of such innovative spirits. Pioneers
in most industries, once they have reached the status of incumbent, are powerful. Sometimes, however,
they get complacent or are not in a position to cater to the growing or shifting demands of the
marketplace. New entrants can take advantage of gaps in the offerings of these aging pioneers, or find
innovative ways to market their product or service. Globalcom was able to break into the Nigeria
Telecoms market easier because other operators did not implement per second billing which should
have slowed Globalcom’s race if already in place as at that time.
While it is fine to be a dominate player in a Telecommunications starved economy like Nigeria but it
comes with a price of higher entry cost and product research. Late entrants do not need to go all the way
anymore. It cost less to imitate a product than start from the scratch and with a penetration that is still
less than 40 percent of the license under territory of 140 million people, there are still opportunities for
deeper market share.

For the late entrants to quickly find their voices in the competitive Nigeria Telecoms market, they need
to study the Mobile Value added services product portfolio offerings of the existing market leaders,
Market environment and positioning. Some Basic strategic planning for service offering and Product
portfolio is for late entrants to look for new geographic (where possible) and segments for their
products. Presently, most Mobile value added service offerings of Dominant operators are focused on
mass and youth segment market and the chief products are entertainment based which do not offer any
real life benefits in any manner.

Strategic market entry plans for Telecoms late entrants include price reduction in an existing market. By
introducing a product at a lower price than Dominate Operators, a late entrant can attract new
subscribers who would not have otherwise signed for the service and in effect such a product ¬¬will lead
to an expansion in the total market. An operator can also subsidize low end phones to reduce entry cost
for people that ordinarily that might not be able to pay a lump sum for handset or even acquire one.

Product and service innovation with focus on a niche market, can help to establish late entrants as
dominant players. Companies can compete by being innovative in the marketplace. The innovation may
be radical or incremental. One example of incremental innovation is an enhanced version of an existing
product. The enhanced product can compete directly with existing products, or it can be positioned to
attract a smaller segment of the existing market. In addition, the improved product or service can
sometimes attract new subscribers that are not the current target for the existing product or service. For
example, Blackberry phones are currently without international language translations for emails and
Sms. All the unique selling points for Nigeria Mobile operators for BlackBerry phones is the email service
while neglecting the value added on for Blackberry, that has potentials to earn data revenue, change the
face of e-commerce interactions in Nigeria and also further differentiate the operators offerings of
Blackberry.

Late entrants can adopt the above to make in roads into the Nigeria Market but they should also be
mindful of the barrier set up of the dominant players with substantial research and development
investments, being early in the market are well positioned to stifle the growth of the new entrants.
Dominant operators like the MTN,Glo and Celtel in the GSM market and starcoms, Telkom-Muiltilinks in
the CDMA market had established a presence in the market place, build brand equity and created an
excellent distribution network. Also, a peculiarity of telecoms industry is that the quality of service is
primarily determined by coverage. Having evolved over time, the first entrant's(MTN) network usually
has much better coverage. The customers become used to enhanced coverage over time. So new
entrants have to invest significantly to achieve this same coverage, an effort that is capital intensive and
time consuming. All new networks have initial bugs that take time to fix. Subscribers are just not willing
to go through another learning curve, when there is already a robust supplier of service. Another
frequent constraint is access to property to build the towers, since the first entrants have already seized
the ideal sites for coverage but Visafone will be leveraging on the extensive branch infrastructure of
Zenith Bank to roll out while Alheri and Etisalat can opt for Co-location services of Helios Towers. But in
the absence of these bail outs, the late entrants may require to invest larger amounts in network
infrastructure to gain similar coverage. Given these hurdles, it can take two to three years before a
challenger achieves coverage competitive with the incumbent's.

In addition to coverage and related quality of service, another huge barrier to entry for new entrants is
the issue of number portability. The NCC has been making efforts and educating the dominate operators
on number portability since they will most likely serve as the donor network while the late entrant will
most likely be the recipient network. The success of number portability depends on the ability of the
donor network to perfect the processing of the subscriber in a turn around time or hence the subscriber
becomes frustrated while attempting to join another network while keeping his number.

The inherent advantages to being first in the Nigerian telecoms market are control of ideal sites; freedom
to evolve and fine-tune network coverage; building of brand loyalty by offering superior customer
service; locking in customers by subsidizing equipment for an extended period under fixed-service
contracts, and gaining control of key channels of distribution.
Late entrants do also have its own advantages if they are able to learn from the pit falls of the dominate
operators in offering a superior level of customer service, deploying new technology, so that a new
entrant can offer similar or better service at a lower cost, the new entrant may also develop a new way
to access the market, with an innovative distribution strategy and may simply be pricing aggressively,
targeting selected segments by taking advantage of the incumbent's tendency to average pricing across
all segments.
While the dominant operators do have their own advantages, so do the late entrants. They are coming
with latest technology and more knowledgeable about the end-user experiences of that particular
market. Examples abound of Telecoms operators that moved from late entrant position to dominant
players by getting it right. Orange, successfully established its self as a dominant player from a late
entrant in the British Market and Globalcom, did same too in the Nigerian Market.
I wish Visafone,Alheri,Etisalat and Nigomsat (If eventually awarded a license) an interesting journey into
the fastest growing telecoms market in Africa!

Historical Background on Etisalat

Emirates Telecommunications Corporation which is also known as “Etisalat” was well

known UAE-based telecommunications services provider (Etisalat, 2011). The

corporation was currently operating in 18 different nations around the globe and of 2009
of November, the company became the 13th largest Mobile network operator in the

world. Currently, a total of 100 million customer base makes the company more

impressive. Actually, the company earns net revenue of USD $8.4 billion (AED 30.831

billion) and net profits of USD $2.407 billion (AED 8.836 billion) on January 2010

(Etisalat, 2011).

Perhaps, the rapid growth of technological advancement like the creation of Etisalat in

the society has brought people so much ease in all the things they do. Part of this

technological advancement is the emergence of the innovative activities for Etisalat

(Etisalat, 2011). Management of innovation is often regarded as the unquestioned

cornerstone towards competitiveness in the 21st century. These technological

advancements have brought people especially those in the business word to utilise a

strategy that would be helpful in enhancing the business value of Etisalat (Etisalat,

2011). Furthermore, this development has made changes and development of the

plans and strategies of the management of any organisation especially those in the

marketing environment. Within the market place, one of the most important things to

consider is to establish a strategy that will be useful for different activities of the

organisation and enhance the value of the business as a whole. Part of the changes

brought by the competition of these industries globally is the new economics, new

market structure, new marketing strategy as well as the new structures of each and

every industry within this field.

In the company’s history, Emirates Telecommunication Corporation or the known

Etisalat was founded trough a joint-stock company between International Aeradio

Limited, a British Company, and local partners in 1976 (Etisalat, 2011). However, the

ownership structure changed in 1983 whereas the government of United Arab Emirates

held a 60% share in the company. The remaining 40% shares were publicly traded

(Etisalat, 2011).

In 1991, the UAE central government issued Federal Law No. 1, which gave the

corporation the privileges to give the telecommunications wired and wireless services in

the nation and between UAE and other nations. It also gave the firm the right to issue

licenses for owning, importing, manufacturing, using or operating telecommunication

equipment (Etisalat, 2011). This almost gave Etisalat both regulatory and direct

authorities, which finished the domination of the telecom giant in the UAE. With the aim

of preserving the country's economic growth, the law made provisions for the progress

of the telecommunication segment in UAE. The boost of trade lines from 36,000 in 1976

to more than 737,000 in 1998 was one of the significant gauges of Etisalat network's

intensification and progress (Etisalat, 2011).

An imperative highlight was Etisalat's instigation of global operations in January 2001,

when under the brand name of Ufone it started working out of Islamabad. Nowadays

Etisalat situates 140th among the Financial Times Top 500 Corporations in the globe in

terms of marketplace capitalization, and is positioned by The Middle East magazine as

the 6th largest company in the Middle East with regards to capitalization and revenues

(Etisalat, 2011). Etisalat is the major provider outside the oil sector to growth

programmes of the UAE Federal Government. Etisalat has also won praises from

across the region for its nationalization programme (Etisalat, 2011).

With regards to the innovations of Etisalat, the consideration of the needs of the

consumers is highly recognised. Furthermore, the satisfaction of consumers and

company are projected effectively. In accordance to the evaluation of the effectiveness

of the innovative services of Etisalat, PEST analysis was illustrated. PEST Stands for

Political, Economic, Sociocultural and technological factors that influence Etisalat’s

overall performance in the market place with respect to innovations.

Political Sector- A company will not be able to gain success if they will not consider legal

and political sector as part of their strategy. Etisalat has observed business ethics.

Hence, the company considers legality in all their actions. They make sure that all their

services will be useful in response to their social responsibilities. Politically, Etisalat has

tried to be helpful in the society. In fact, the company has established Etisalat Research

that supports science and technological advancements.

Economic Sector- Economically, it can be said that Etisalat is secured by having

continuous growth rate throughout the years. With regards to innovations of services,

the company as been able to established an economic stability to continue to serve and

offer people from different agencies and sectors private or public, locally and globally.

Sociocultural Sector- Culture is an important factor in understanding an industry,

because for any organisation to operate effectively it must for some extent have a

general set of believe and assumptions on how culture will influence the productivity

and the success or failure of any company. In Etisalat, the management sees to it that

they value the opinion of their employees no matter what is their nationality. Since, this

company is competing globally; it cannot be denied that they need employees form
different cultures to be in the company to help in the decision making. It is also

indicated that the international managers has been able to create a positive relationship

in the local managers. Moreover, the management of the company has seen to it that

they would be fair in treating all their employees.

Technology Sector - The complexities of achieving business success through increased

efficiency, effectiveness and competitiveness, combined with innovative applications of

modern technology, has heightened the awareness of both Technology and business

managers towards more strategically oriented approaches for planning and

management of any industry (Luftman et al, 1993). From its history, it shows that

Etisalat achieved a tremendous growth. Their technology is built upon the highest

quality and functions in order to provide customer’s demands in communication.

Herein, the physical resources of the company were being monitored to maintain its

efficiency to further enhance the organisation’s position to be the number one

telecommunication industry in the global market.

References:

Etisalat (2011). About Us. [Online] Accessed: February 11, 2011. Available at

<http://www.etisalat.ae/index.jsp?

lang=en&type=channel&currentid=a79a8e621187b010VgnVCM1000000c24a8c0

____&parentid=ed38800d1f52a010VgnVCM1000000a0a0a0a____>
Luftman, J.N.; Lewis, P.R; Oldach, S.H. (1993). “Transforming the Enterprise: The

alignment of Business and Information Technology Strategies.” IBM Systems

Journal 32(1): 198-221.

Read more: http://ivythesis.typepad.com/term_paper_topics/2011/02/historical-background-on-

etisalat.html#ixzz1O7uca4fl

Action programs
Marketing strategies should be turned into specific action programs that answer the
following questions: What will be done? When will it be done? Who is responsible for doing it?
And how much will it cost? For example, the manager may want to increase the sales promotion
as a key strategy for winning market share. A sales promotion action plan should be drawn up to
outline special offers and their dates, trade shows entered, new point-of-purchase displays and
other promotions. The action plans shows when activities will be started, reviewed and
completed.
In promoting the products, I would choose to market notebook computers to my parents,
children and to myself. I am selecting any or all of these groups since it would be valuable for
people always on the go. But if I were to be more specific, I will market the notebook computers
to myself. People at my age would need notebook computers more than any other group. I am
able to identify the reasons because I am aware of the attributes that are essential to
implementing a successful marketing strategy and I would implement that to convince parents to
buy the Desktop PC’s. They would not really need the notebook computers to or handheld
microcomputers because parents are on the go always.
1. Identify your customers’ needs and find a way to fulfill them. I must begin with this
foundation—or my marketing strategy is doomed to fall. If the competition has already
succeeded in meeting the number one need, one must decide to address it better or become a
niche player.
2. Establish one’s own identity by creating a unique selling position. One must clearly
communicate one’s customers at a level they understand what one offers that makes one different
4
from one’s competition.
3. Educate the consumer that you exist. Here, you must cut through the clutter to
communicate to your targeted customer that you have something to offer that he or she wants.
When you introduce a new product, you must inform the consumer of its benefits compared to
the other choice out there.
4. Develop a distribution plan. To accomplish this, you must determine the suitable
channels to sell your product to the end user. The right product in the wrong store will never
reach its potential.
5. Understand that you exist in an ever-changing marketplace. Remember that no
marketing strategy is going to last forever. Since change is constant, you must be continually
adapting. At the same time, you must be anticipating that change knowing that the wrong plan
will hurt your company. But doing nothing is a defensive position that always results in failure in
the long term.
Once the marketing strategy is in gear, I better face up to the fact that the other guy can
think too. When plan kicks in, the competition is going one way or another. I can be sure a
competitor will not lie down and play dead. There are many marketing strategies that fail
because while the initial plan was good, nothing effective was done afterward in response to the
competition’s reaction.
Everyone uses a computer and a Desktop PC. Therefore, as part of the team, I will
convince parents that computers are excellent medium for learning by doing (Papert, 1993).
According to Porter (1998a, 230), the intensity of competition affects the profitability of
a company. Competition comes in different forms in terms of price, product differentiations and
marketing strategies. Thus, depending upon the nature of the competition, companies seek to
5
strengthen their competitive advantage relative to their competitors to obtain a respectable
market share. Competitive advantage exists when a business is able to obtain a level of
profitability that exceeds the industry average due to the delivery of products similar to
competitors at a lower cost or providing distinguishably better service at a similar cost with
competitors (Porter, 1998b, 78).
Working parents need to possess a Desktop PCs. The computer, along with the Internet
has set the stage for an unprecedented integration of capabilities like never seen before. This
technology can be readily adapted to the area of need of a parent where the primary presence of
an entity in the World Wide Web can serve both as an advertising medium as well as a business
medium for the company.
Conclusion
In conclusion, companies are facing different complexities and challenges. Hence, each
management should be able to identify, develop and exploit their core competencies in order to
have a long-lasting and successful business and this can be done through strategic planning.
Successful strategy requires the firm to choose the markets in which its distinctive capabilities
yield competitive advantage.
6
References
Papert, S. (1993). The children’s machine: Rethinking school in the age of the computer.
New York: Basic Books.
Porter, M.E. Competitive Advantage: Creating and Sustaining Superior Performance.
(1998). New York: The Free Press,pp. 75-98.
7

Etisalat As Case Study For Business Success In Nigeria

Lagos 28th January, 2010. The Fifth entrant into the Nigerian telecoms market, and the first of a new
generation; Etisalat, has been described as a business success by the Dean of Business Administration,
University of Lagos, Professor Ben Oghojafor. The adept scholar also revealed plans by the University to
use the telecom giant as a case study for business success with the aim of helping other businesses learn
from it and initiatively develop their own niche.
Giving reasons for the rationale to use Etisalat as a case study, Professor Oghojafor explained that certain
indicators guided the decision. “The reason for selecting Etisalat is not far fetched”, he said. “Etisalat is
the latest GSM provider to enter into the Nigerian telecommunications market, but was able to
penetrate and establish itself in the market using innovative marketing strategies like the 0809uchoose
campaign and its 0809ja theme, which resulted in brand switch and quick subscriber base build up”.

The professor noted that establishing a GSM company in Nigeria could be a tough challenge, but
Etisalat’s experience in other terrains was useful to the company in the successful establishment of its
operations in Nigeria. “A study on their strategy will thus be relevant to the development of other
businesses in Nigeria. A large volume of data, covering different areas like human resource, marketing,
risk analysis, operations, financial statements, etc., will be assessed during the study”, he said.

On the benefits of the study to the Nigerian economy Oghojafor said: “the benefits will be in two folds;
by providing insights into the business strategy of Etisalat in Nigeria, other businesses can initiatively
develop their own niche, by coming up with something unique in their respective industries. Also it is a
good opportunity for students to relate and learn from a company based in Nigeria.

The University of Lagos is fast becoming a case study warehouse, having conducted a number of case
studies on other multinational companies previously. Some of these companies include Total, Vita Foam,
UAC, etc.

ETISALAT NIGERIA – AN INTRODUCTION

Emerging Markets Telecommunication Services (EMTS), trading as Etisalat, is a Nigerian company duly

incorporated under the laws of Nigeria in partnership with Mubadala Development Company and Etisalat

of the United Arab Emirates. Incorporated in Nigeria as a private company, it acquired the Unified Access

License from the Federal Government in January 2007. The license includes a mobile license and

spectrum in the GSM 1800 and 900 MHz bands. Etisalat acquired a 40% stake in EMTS and is now the

operator of the Unified Access License.

Etisalat has been the telecommunications service provider in the United Arab Emirates since 1976 and has
footprints in 18 countries traversing the Middle East, Asia and Africa. In its many years of operations, it

has built up state-of-the-art telecom infrastructure and taken a leadership position of innovation and

reliability among regional and international operators.

In Nigeria, Etisalat made the first official call on its network on the 13th of March 2008 in the presence of

officials from the Nigerian Communications Commission (NCC) and the Senate of the Federal Republic

of Nigeria. In September of same year, it kicked off commercial operations with the innovative

0809uchoose campaign which enabled Nigerians choose numbers special to them as their mobile

numbers. Full commercial operations began in October 2008.

Etisalat consistently demonstrates its core values of optimism, simplicity and caring – for which it has

become known in other markets to the Nigerian people as it offers them world-class telecommunications

services. It is investing heavily in the Nigerian economy as well as in its own human resources. From

day-one of its operations in Nigeria, it has put in place various skills acquisition and training programs to

enable its people offer outstanding quality and services to Nigerians.

Etisalat is also committed to taking its place amongst leading corporate citizens in Nigeria by making

wide-impact and sustainable social investments. Etisalat believes that apart from offering a solid platform

of technological innovation, sustainable investment is the bedrock of stellar growth and economic

stability.

Indeed, at Etisalat the future is a world in which technology extends people’s reach on all fronts.

Etisalat’s vision is a world where people’s reach is not limited by matter or distance; a world where

people will effortlessly stay in touch with family and friends; a world where businesses of all sizes can

reach new markets without the limitations of distance and travel.

Etisalat’s mission is to extend people’s reach. Etisalat is actively developing advanced networks that will

enable people to develop, learn and grow. It has been at the forefront of technological innovations,

including a 3.75 network deployed in Egypt. In addition Etisalat owns majority shares in Thuraya, a

leading provider of satellite telephony.

Value creation

Each of the GSM companies comes up with market inspired products that satisfy customers existing and

latent needs and includes dimensions such as the need for participation, freedom and change. A very good

example is etisalat easycliq. The foundation of this is taking an inside-outside-approach to product

creation. Fundamental to achieving this is evolving a well managed market research program.

Value delivery

Not only must you come up with great product offerings, you must also be able to deliver on the offering

promise. MTN fastlink for example fails woefully on this core. The name fastlink promises fast and

reliable internet connection to the users but unfortunately, this is not the reality of actual users’ experience

The other part of value delivery is customer care. You can have a great product with pocket friendly

price but without good customer care to ensure customer satisfaction, you won’t succeed.

What this means is that effective customer relationship management must be employed. Not just in

theory or in some overly complex CRM systems but it must be exemplified by improved customer

satisfaction.
Value communication

A major determinant of success in the Nigerian telecoms market will be the ability of a provider to come

up with meaningful brand differentiation. That is, the brand must stand for something in the minds of the

consumer.

This is where brand positioning comes in. there is a hole in the consumers’ minds and companies need to

fill this hole with something unique about their brands. Whichever way the pendulum swings, the

customer will be the winner

Below are some of the ways Etisalat communicate value:

Free Samples is one of the oldest methods often used in consumer promotion. It is desirable when

product is new and relatively unknown to buyer and consumers. The buyer under such a situation would

like to be careful in making a choice of brand selected and would therefore require a higher degree of

persuasion. They may chant the slogan that a trial will convince you.

The distribution of free samples can be done in different ways:

The seller of, ETISALAT moves around consumers from door to door giving them free samples. The

sample may be mailed to the consumer. This is especially useful where the consumers are widely

dispersed and it is difficult to meet them physically.

The free sample can also be given to visitors during an exhibition.

Exhibition is to promote goods or services so as to facilitate sales free sample can be attached to

ETISALAT SIM card such as Cap, T-Shirt, Biro and Pen.

COUPON: The ETISALAT organized a Coupon. This is a game id a buyer wins it. He got a free gift. The

Coupon is provided in a few of the unit provided for sale to consumers.

Guarantee: This may given to buyer of ETISALAT. The guaranteed can be divided into two which are:

Implied guarantee and Expressed guarantee.

The implied guarantee is most common where a buyer is regular customer.

Expressed guarantee the necessary paper of the guarantee offer are signed and exchanged between buyer

and seller.

Price–off: This incentive is designed to attract the highly price segment of the buyer. Price reduction offer

announced with the inscription of some money off the origin list price would make some consumer to buy

more than necessary. Price–off is a regular offer by government agencies.

Premium: This is any item of merchandise that is of a relatively lower value given purchase decision now

or in the future.

6. Seasonal Discount Price: ETISALAT do offers discount price are tagged on product during

importance festival like Sallah, Christmas, Idll-Maulud and Easter.

The trade promotion: member in the trade are basically those in the distribution channel. The seller or

producer of ETISALAT should also target incentive on the trade also or channel members. A number of

ways of wooing member channel.

1. Free Goods: A certain amount of product (the same or different from the purchased item) are given

freely to middlemen. Condition that the middlemen was able to purchase up to a stated quantity of the

same or another product.

2. Buying Allowance: This I usually done by ETISALAT. It is a short term offer of cash reduction on

the price of each case.

3. Buy Back Allowance: A good seller of ETISALAT must do every thing to create and sustain

customers. Most buyers like to create relationship with the sellers. The seller should reciprocate such

gesture by making effort to draw the customer close.

4. Count and Recount Allowance: This are allowance given by ETISALAT in cash. Or kind is given to

a buyer who took the pain to like the product from manufacture warehouse.

5. Sales Contest: These are arranged for distributor’s retailer, and their sales people. Sales contests are

designed to stimulate and motivate channels members to aspire to greater sales performance price are

awarded to participants either in cash, in kind or in certificates.

SALES FORCE PROMOTION

Incentive may be designed to motivate members of the sales force to push producer’s goods over or above

those of competitors. A sale person is designed to carry competing product to the buyer it is at this point

or presentation demonstration, display and objective handling that the sale person bias should be secured.

The following incentive can be given directly to the sale force which are:

1. Sales Contest: The sale contest can be arranged by brand manager for all sale people with the faster

and lightest turnover win a prizes. Consolation prizes may also be given to other participants.

2. Materials: The producer of ETISALAT can provide transportation and material handling facilities to

it sales people.
3. Social Forum: brand manager of ETISALAT on also organize forum Etisalat issues such as a get-

together or party can be given to entertain sales representative, workshop.

Etisalat unveils, assures complete range of innovative services

Lagos, 14 March 2008

…NCC expresses satisfaction with operator

Etisalat, Nigeria’s fifth licensed GSM operator, on Friday, committed itself to providing world-class
telecommunications services to its prospective customers.

Speaking at a media presentation, Mr. Hakeem Belo-Osagie, Chairman of Emerging Markets

Telecommunications Services (EMTS), owners of the licence, promised that Etisalat, the operating
partner, will create a world-class communications infrastructure that will enable Nigerian people and
businesses compete on the global stage.

This assurance came on the heels of the industry regulator’s expression of satisfaction over the amount
and capability of infrastructure deployed by the new entrant into the telecom sector in Nigeria.

“Etisalat has pioneered technology in diverse markets, leading its customers and partners into the
future. Etisalat’s success in countries like Egypt, Afghanistan, Sudan and Central African Republic shows
that it has the capacity to thrive in difficult and challenging terrains. Here in Nigeria, Etisalat will replicate
and, even surpass, its achievements in those markets,” he noted.

Bello-Osagie had during the NCC’s facility inspection tour of the company’s Data Centre on Thursday,
highlighted that Etisalat’s entrance into Nigeria’s telecom sector was the culmination of the bilateral
agreement between Nigeria and United Arab Emirates. He promised that Etisalat is developing a
partnership that will be mutually beneficial to all – economically, technologically and socially.
The Chairman also noted that both events are the first public outing in the process of rolling out services
across Nigeria.

Corroborating the Chairman’s statement, Mr. Saoud Al Shamsi, the Chief Executive Officer said Etisalat
will offer the Nigerian people innovative technologies to enable them achieve both personal and
business goals. He informed that the company’s operations are premised on the core values of energy,
openness and enablement.

In his remarks after the facility tour, Senator Sylvester Anyanwu, Chairman, Senate Committee on
Telecommunications, expressed delight that Etisalat is set to offer innovative services that will ultimately
satisfy the yearnings of customers, adding that the historic switch on of the network was indeed the
beginning of hope for Nigeria’s telephone users.

In a similar vein, Engr. Ernest Ndukwe, the Executive Vice Chairman of NCC, who was represented by
Engineer Stephen Bello, pointed out that the coming of Etisalat will bring more competitiveness into the
nation’s telecom sector, fill the vacuum left by non-performing licensees and provide customers with
more choices.

The NCC team witnessed the historic first call on the Etisalat network, which was made at the company’s
Data Center in Lagos.

…ENDS

NOTE TO EDITORS

Etisalat, the leading telecommunications service provider in the United Arab Emirates since 1976, is the
majority shareholder and the operator of the $400million Unified Access Licence won and fully paid for
by Mubadala Development Company in January 2007.
Famous for over 30 years for delivering technological excellence, innovation and reliability, Etisalat is
pioneering technology for tomorrow’s customers.

Internationally Etisalat provides telecommunications services in 15 countries across Africa, the Middle
East and Asia and continues to pursue new mobile and fixed line opportunities in many growth markets.
Its network coverage is unparalleled and internationally Etisalat has over 420 international roaming
partners.

Etisalat offers fixed line services over its Next Generation Network, and provides mobile users with a
range of services and applications such as GPRS, 3G, BlackBerry and MobileCam. Etisalat provides
broadband internet access to the entire UAE and is currently working on rolling out triple play services,
which will incorporate high-speed Internet, TV and fixed line offerings all via one cable known as Triple
Play Services. In addition to voice and data networks Etisalat also has many other offerings including the
E-Vision cable TV network. Etisalat is also the majority shareholder in Thuraya, a leading provider of
satellite communications.

2. Lagos: April 1, 2008

Etisalat embarks on strategic staff development

In its bid to offer excellent telecommunication services to Nigeria, Etisalat, the country’s fifth licensed
GSM operator, has commenced a strategic staff induction and functional training programme to inculcate
its core values, vision, mission, and ambitions to the employees.

The programme which started on the 31st March 2008 was attended by an initial 60 personnel from the
various units of the company. In total, over 500 Nigerian staff will be trained in batches before the end of
July. The training covers the company’s operational manual and other developmental needs that would
further equip Etisalat staff to become better managers in the future.
In his message to the delegates, Mr. Saoud Al Shamsi, CEO of the company said Etisalat is an employer of
choice that offers its staff an equal opportunity to career growth, irrespective of their race, culture or
gender. He informed that Etisalat strongly believes in Nigeria and is committed to contributing its quota
in developing a strong and virile workforce in the country.

“At Etisalat, we see our people as our greatest asset hence we go the extra mile in developing them to
become the best they could. This development exercise is only one of the on-going efforts at
demonstrating this belief,” he said.

Al Shamsi added: “We offer a series of quality training to our staff to prepare them for the real-world
market environment. The objective is to empower them to respond effectively and efficiently to
customer needs and the vagaries of the Nigerian telecommunications market.”

The induction programme exposed staff to the DNA of the Etisalat brand and also covered HR, finance,
legal, regulatory affairs, products/services, customer care, security, HSE, contract procurement and
administration issues.

A cross section of the staff commended the management of Etisalat saying the programme has given
them a sense of belonging and fired their aspiration to work towards achieving the company’s goals of
offering high quality telecom services to Nigerians.

3. Lagos: April 23, 2008

Etisalat steps up for commercial launch, acquires own office property

Etisalat, Nigeria’s fifth licensed GSM operator has relocated to its own newly acquired corporate office
complex. This is to further demonstrate its preparedness to offer Nigerians world class
telecommunications services.
The property located in the highbrow Banana Island, Ikoyi, Lagos provides Etisalat top rate employees
with the right environment to function optimally.

“Acquiring our own property lends credence to the fact that Etisalat believes in Nigeria and has indeed
come to stay. It further demonstrates our commitment to Nigeria”, Mr. Saoud Al Shamsi, CEO of the
company said.

He explained that Etisalat’s decision to acquire its own property was strategic as it “reaffirms our
readiness to offer Nigeria the best available telecom services and best human capital development.”

Al Shamsi further stated that the new office is spacious and will accommodate the firm’s growing
workforce, noting that this will enhance the efficiency and productivity of its employees.

“Etisalat prides itself as an employer of choice. We promote good motivation for the staff in all the
climes where we operate. Our belief is that a conducive work place will in the long run impact on
efficient service delivery to our customers here in Nigeria”, he said.

4. Lagos: April 28, 2008

Etisalat recruitment drive elicits overwhelming solicitation from job seekers

Ongoing recruitment of qualified Nigerians to fill various job cadres in Etisalat Nigeria has elicited
thousands of applications from prospective employees.

Thousands of applications are received on the average for each of the available positions in the various
operational departments of the telecom company.

Saoud Al Shamsi, Chief Executive Officer, Etisalat said: “We are reputed as employers of choice in all the
regions where we have rolled out services. Our goal is to drive Etisalat’s activities towards the
development of human capital while we offer world class telecommunications services to the people of
Nigeria.”
To this end Etisalat has embarked on a recruitment drive that attracts team players with strong records
of achievements, enthusiasm and innovation. It plans to sign on 1,000 professionals within the first 18
months of commencement of operations in Nigeria.

Etisalat is rated globally as an equal opportunity employer, committed to investing in the Nigerian
economy as it provides world class telecommunications services.

5. Lagos: May 8, 2008

Etisalat takes its place among international players in ITU 2008

Etisalat is taking its place among international telecom giants in this year’s ITU 2008. The ITU,
headquartered in Geneva, Switzerland is the international organization within which governments and
the private sector coordinate global telecom networks and services. It has become a major networking
platform for top ICT names to come together and focus on core issues relating to ICT expansion across
regions.

ITU TELECOM AFRICA 2008 encompasses an Exhibition featuring the latest technologies and innovations,
and an extensive forum that explores key technologies, policies and applications driving Africa's ICT
sector.

Etisalat Nigeria, the only Nigeria telco exhibiting at the international sphere, will along side its parent
company showcase some of the groundbreaking technologies that characterize its operations across
Africa, the Middle East and Asia.

Saoud Al Shamsi, Etisalat Nigeria’s CEO said that “Etisalat is driven by a fundamental commitment to
Nigeria and the region at large. Taking our place in ITU 2008 is a strategic move as a leading regional
player in view of the important themes associated with this year’s event.”
He added that “Etisalat is excited to be taking an active part in addressing the important issues of ICT in
the region’.

In the same vein he disclosed that arrangements were in place to receive high profile Nigerians, such as
top guns from the Ministry of Information and Communications, including The Minister of State, Alhaji
Ibrahim Nakande, the Nigerian Ambassador to Egypt and top NCC officials at the Etisalat stand.

Etisalat in addition is supporting several Nigerian journalists to participate actively in ITU 2008. Al Shamsi
said that “this only underscores our global practice of partnering with the Media as allies in development
and progress.”

He concluded by saying that Etisalat is set to offer Nigerians the same service/product quality, simplicity
of delivery and care for which it is highly regarded in other markets.

6. Lagos: May 17, 2008.

ITU 2008 - Etisalat plays key roles

The ITU summit ended on a high note on Thursday, May 15 in Cairo Egypt, with Etisalat clearly and loudly
demonstrating its regional strength and thought - leadership position as it participated keenly in key
sessions.

Speaking at the Nigerian Day, organized by the Federal Government of Nigeria, through the NCC and
Ministry of Information and Communications, Saoud Al Shamsi, Etisalat Nigeria’s CEO reiterated Etisalat’s
commitment to further develop the telecommunications sector in the country by offering Nigerians
world class telecommunications services as it does in other countries.
Earlier on in a presentation at the event, the Executive Vice Chairman of the NCC, Dr. Ernest Ndukwe
commended investors and partners like Etisalat for believing in the country and making the bold move to
invest in it. The Secretary General of the ITU, Dr Hamadoun Touré also saluted and encouraged new
entrants into Nigeria In the same vein.

CEO of Etisalat Nigeria played host to several high profile visitors at Etisalat’s 250SQM futuristic stand.
The stand has been adjudged by several visitors and stakeholders as impressive and best in class. The
visitors included the Nigerian Minister of State for Information and Communications, Alhaji Ibrahim
Nakande, the EVC of NCC, Dr. Ernest Ndukwe, Charge D’Affaire at Nigeria’s Mission to Egypt, Ambassador
Adewunmi Azeez amongst many other dignitaries.

He assured the visitors of Etisalat’s commitment to replicating Etisalat’s success in other markets in
Nigeria by offering the same service/product quality, simplicity of delivery and care for which it is highly
regarded in other markets.

7. Lagos: May 21, 2008.

ITU 2008 – E-ANTS attract crowds to experience Etisalat’s innovations

Etisalat showcased some of the cutting edge technology for which it has become known at the just
concluded ITU summit in Cairo, Egypt. Etisalat’s display was within a futuristic, towering and impressive
three-leveled 250SQM stand. The stand has been adjudged by several visitors as best in class at the four
– day summit.

The stand showcased amongst other things the capabilities of Etisalat’s 3.75G network deployed in Egypt
last year. Also on display were mobile TV, mobile cam, various data services and a host of others. Several
high profile visitors to the stand, including the Minister of State for Information and Communications,
Alhaji Ibrahim Nakande, the Executive Vice Chairman of NCC, Dr. Ernest Ndukwe experienced these
cutting edge technologies first hand at the Etisalat stand.
However the novel E-ANTS, Etisalat’s futuristic mascots on stilts became the cynosure of all eyes as they
thrilled the crowds on the hour by intermingling with visitors to the stands. The E-ANTS measuring over 8
feet tall, one ‘male’ and one ‘female’ were on hand to entertain, pose for pictures and attract attention
to the stand.

Etisalat’s E-ANTS truly demonstrated Etisalat’s values of care and simplicity. In the high-tech environment
of ITU, the E-ANTS provided the human touch and customer care for which Etisalat is known for
everywhere it operates.

8. Lagos: May 27, 2008

Etisalat showcases regional strength and diversity as it takes centre stage at MECOM 2008

The Middle East Communications (MECOM) Exhibition and Conference & Summit kicked off on high
notes on 26 May 2008 with Etisalat taking centre stage to send a clear message of commitment to
excellence and service quality and to its newest markets.

The Summit which is being held at the prestigious Abu Dhabi National Exhibition Centre, UAE offers the
communications industry one of the largest dedicated business to business networking platforms in the
Middle East. In its second year, MECOM brings together over 100 exhibitors offering the latest and most
innovative products and technology.

Speaking at Connect Conference at the opening events, the Chairman of Etisalat Group, Mohammed
Hassan Omran charted the course of Etisalat’s outstanding growth. “Between 2004-2007 alone our
growth has accelerated and we have consistently recorded more than 30% growth year on year”.
He went further to say that ‘‘Etisalat’s growth will continue, fueled by the launch of the Nigerian
subsidiary’’.

In a message to the delegates, the CEO of Etisalat Nigeria, Saoud Al Shamsi said that Etisalat Nigeria is in
a unique position to leverage on the synergies in value, innovation, expertise and strength of Etisalat’s
international network. This he said “puts us in a strong position to address existing and emerging needs
for subscribers in the Nigerian market”.

9. Lagos: June 4, 2008

NCC supports Etisalat plans to roll out quality services

…as Etisalat concludes interconnection agreements with major operators

Etisalat’s resolve to offer quality services to Nigerians through a phased roll-out strategy has won
regulatory acknowledgement with the Nigerian Communications Commission (NCC). The commission
has emphasized adequate preparation and readiness as key imperatives in the roll out of services by
GSM operators.

Engr. Ernest Ndukwe, Executive Vice Chairman of NCC, said that the government is more interested in
telecom firms understanding the real need of the customers. Engr Ndukwe added that: “My message to
Etisalat is: make sure you are ready and roll–out quality services so that people will be happy”.

Engr. Ndukwe and the Minister of State for Information and Communications, Alhaji Ibrahim Nakande
were among VIPs that visited Etisalat’s pavilion during the West African International
Telecommunications and Information Communication Technology Exhibition (W.Afri.Tel 2008) holding in
Lagos from June 3 to 5, 2008. They also experienced the quality of Etisalat’s network firsthand at the
exhibition as they made live calls on Etisalat’s network.
Alhaji Nakande commended Etisalat’s entry and investment of US$400 million into the Nigerian telecom
market as a major boost to the economy.

Etisalat pushed further to assure the Nigerian public of its readiness to offer them quality services with
the announcement that it had concluded interconnection agreements with the other major GSM
operators in readiness for full service launch.

Speaking at the Etisalat Day held on June 4, Saoud Al Shamsi, CEO of Etisalat Nigeria in a message
delivered on his behalf by Ibrahim Dikko, Director, Government Relations declared: “we are not driven by
profits to rush to sell services that are not robust. Our objective is to give consumers a world-class GSM
network”. He added that its service offering will be simple but of superior quality; stressing that at all
times the company will show that it is a caring network.

During his visit to Etisalat’s pavilion, Jide Sanwo-Olu, Lagos State Commissioner for Establishment and
Training, expressed delight at the assurance by Etisalat to offer world-class services, saying telecom
customers are eager to enjoy quality services just like they do in other markets.

Makanjuola Alabi, the Managing Director of Lagos State Signage and Advertisement Agency (LASAA),
during his visit to Etisalat pavilion at W.Afri.Tel described Etisalat stand as excellent.

Etisalat made its maiden participation at the fifth W.Afri.Tel expo a unique and historic one as it hosted
industry-wide Nigerian journalists that cut across ICT/Telecom, brand and communication and business
segments at its pavilion.

10. Lagos: June 13, 2008

Etisalat partners mediaReach OMD for innovative message spread in Nigerian media
Etisalat's careful selection of strategic partners yesterday yielded another result as the company signed a
Memorandum of Understanding (MoU) with a leading media independent company, mediaReach OMD,
with an objective to receive the best and most innovative message spread in Nigerian media.

At the signing ceremony in Lagos, Etisalat, the fifth entrant into the Nigerian telecom market, reiterated
its commitment to its values of care, optimism and simplicity and emphasized that these values will
always drive its dealings in the Nigerian market and expressed the hope that Nigerians would begin to
relate with them.

Saoud Al Shamsi, Chief Executive Officer of Etisalat Nigeria represented by Wael Ammar, Vice President
Marketing, said, ''we are commencing this timely and strategic partnership with mediaReach OMD as our
media buying agency and we use this opportunity to restate that customer needs are at the centre of
our services, they are always at the heart of what Etisalat provides''.

He added that Etisalat's choice of mediaReach OMD was in consonance with the company's reputation
for transparency in identifying and selecting its strategic business partners. “The relationship with
mediaReach OMD is a reinforcement of mutual benefit of each other’s strengths”, Al Shamsi said.

Tolu Ogunkoya, Managing Director of mediaReach OMD, said Etisalat’s selection of his agency was an
exciting experience and the company was poised to deliver cutting edge and innovative service to the
telecom giant. He said, ''We are enthused by Etisalat’s pedigree of successful roll - out of networks in 15
countries across Africa, Middle East and Asia. It’s exciting for us to add this brand to our portfolio.”

He revealed that the agency already has a dedicated team for Etisalat business. “The team is quite
excited and reveling the Etisalat brand and all it will mean to consumers”, he said while noting that
Etisalat’s vision for Nigeria provided mediaReach OMD with a clear sense of direction to deliver on many
aspects of marketing and media communications.

11. Abuja: June 19, 2008

Etisalat reiterates commitment to Quality of Service in Nigeria

Etisalat has reiterated its commitment to providing Nigerians with its trademark quality service, even as
it assured Nigerians that its network was undergoing its final stages of testing prior to its switch on.
The telecom giant, who was a key note speaker along side other leading operators at the West and
Central Africa Communications Congress in Abuja , said Nigeria fits into Etisalat vision to offer world class
services to the citizens because of the country’s enormous potentials.

Mr. Wael Ammar, Vice President Marketing, Etisalat Nigeria said in a presentation titled Etisalat‘s
Strategies for Maximising Growth in West and Central Africa Communication’s Market, that Etisalat’s
commitment to raising the quality of service available to Nigerians underlines its $1.4billion initial
investment in the Nigerian economy.

He explained that as a caring operator, Etisalat recognises the importance and responsibility of balancing
profitability and growth along side long term sustainability. He therefore noted that Etisalat's expansion
strategy in the West and Central African region is driven not only by market potential but also by the
opportunity for Etisalat to add value to lives of the people.

He said therefore that Etisalat is continuously investing in capacity building, both in innovative
technology and high calibre personnel, geared towards robust operations that will ultimately deliver
simple and affordable quality service to Nigerians.

On the possibility of infrastructure sharing with other operators, Ammar confirmed that Etisalat was
open to the idea and was in discussions with other operators on the option of facility sharing.

Ammar revealed that Etisalat expects to be a top tier Global Telco by 2010 while its projected total
investment in the WECA region is expected to exceed USD 5.5 billion. Ammar noted that Etisalat sees
maturing technologies as an opportunity for Africa to maximize connectivity opportunities and bridge
the digital divide. “Etisalat sees Africa’s challenges which are borne out of certain legacies, as
opportunities that can be harnessed to leapfrog to adopting the latest technologies”, he posited.

Etisalat is a leading telco with 32 years’ reputation for delivering technological excellence, innovation and
reliability. It is highly regarded for its successful operations in tough terrains such as Afghanistan and
Sudan. It is pioneering technology for tomorrow’s customers, and has a vision to deploy its experience
and legacy to own a robust network in Nigeria as it has done in other markets.
 UNIVERSITY OF NIGERIA
12. Lagos: June 26, 2008
ENUGU CAMPUS
Etisalat hosts Distribution Partners, assures of sustainable relationship

As part of preparations for commercial launch, Etisalat has held an interactive engagement with its
Distribution Partners where both sides restated unwavering commitment to make Etisalat products and
Department of Management
services available and affordable to Nigerians.

Etisalat said it was keen on providing a platform for sustainable and viable partnership with its strategic
partners in every aspect of business, stressing that the driving goal was to satisfy the customers at all
times. The meeting which held in Lagos, was the first public engagement with the distribution partners,
A Term Paper
and it provided them immense opportunity to know more about the Etisalat brand.

Specifically, the interactive session exposed the distributors to the company’s pedigree of innovative
Title:
technology, successful roll out in tough conditions, as well as the values of simplicity, optimism and care
as its driving forces.

In his presentation, Mr. Wael Ammar, Vice President (Marketing) Etisalat Nigeria, said the engagement
BECAUSE OF THE ADVANTAGE OF LIMITED LIABILITY,
with the partners again demonstrated Etisalat’s belief in making the customer the centre of its service.
This it does by ensuring a careful and objective selection of its strategic partners to deliver quality
EVERY BUSINESS SHOULD
services to its customers.

BE ORGANIZED AS A CORPORATION
“Our purpose in Nigeria is simple: Etisalat will offer the Nigerian people innovative technologies to
enable them reach both their personal and business goals. Therefore, our Distribution Partners are
critical to us in the entire value chain”, he stated.
“NOT AGREED”
Ammar assured the distributors that the process of appointing them was transparent because Etisalat
places premium on efficient and effective distribution backbone as central to its offerings in Nigeria. “In
the regions where we operate, the Etisalat network has always been, and will continue to provide a
distinctly strong backbone for high quality telecommunications services. This is what we have come to
Prepared in Partial Fulfilment of the
replicate here in Nigeria”, he added.

Requirement for the Course:

The distributors commended the management of Etisalat for the interactive engagement, stating that it
has given them a sense of belonging. The distribution partners assured Etisalat that they were ready to
INTERNATIONAL BUSINESS
work towards achieving the company’s goals of offering high quality telecom services to Nigerians.

By
Group 5

S/N NAME MATRIC NO.

41 EGUH AUGUSTINE CHIMEZIE 2006/DEGR/DL/1870
 Title

BECAUSE OF THE ADVANTAGE OF LIMITED

LIABILITY, EVERY BUSINESS SHOULD
BE ORGANIZED AS A CORPORATION

“NOT AGREED”
 Dedication

To the ALMIGHTY GOD for His love, protection, and provision.

 Abstract

A limited liability company is a company that has the liability of its members limited by

the memorandum to the amount, if any, unpaid on the shares respectively held by them.

In other words, in a limited liability company, the liability of a member is limited to the

extent of the value of shares held by him. While repaying debts, for example, if a

person owns 1000 shares of N10 each, then he is liable only upto N10,000 towards

payment of debts. That is, even if there is liquidation of the company, the personal

property of the shareholder cannot be attached and he will lose only his shares worth

N10,000. This is the major advantage of a limited liability company.

But this limitation of liability alone is not enough reason to make every business a

corporation. Other forms of businesses such as the sole proprietorship and partnership

have contributed immensely to the economies of countries the world over. These

immense contributions are discussed in chapters two and three of this paper.

December 2009
 Table of Contents

Page

Title i

Dedication ii

Preface and Acknowledgement iii

Table of Contents iv

Chapter One
Overview of Limited Liability Company……………………………………………1 – 3

Chapter Two
The Importance, Benefits & Advantages of Small Business
(Compared with Limited Liability Company) …………………………..............4 – 10

Chapter Three
Summary and Conclusion ………………………………………………….…….11 – 12

Bibliography ……………………………………………………………………….. 13

Marketing Strategies for Visafone, Etiasalat and others.

By Emmanuel Okoegwale
As the newly licensed cdma and Gsm operators starts breaking ground for roll out plans, indications are
very strong that their might be some displacement in the Nigerian Telecoms Race. Clear favorites and
pioneers like Mtn, Celtel and Glo are poised to face stiff competition from late entrants, Etisalat, Alheri
and Visafone.

Ordinarily, Visafone should not be classified as a major threat since they will operate in the CDMA range
but the class of additional license(800Mhz spectrum) that was bought after taking over cellcom, places
the company in good position to provide some unique services and Coupled with the speedy roll out
plans and the pedigree of the chief promoter, Mr Jim Ovia.

Etisalat is a clear leader with innovative products with foot prints in the Middle East market and many
years of Experience and good financial position. They are a formidable organization.

Little known Alheri is backed by Nigeria’s leading Business magnate, Alhaji Aliko Dangote. This will be his
first known foray into the rewarding Nigeria Telecoms market. Despite the seemingly little dog status in
the telecoms market, they possibly have what it takes to challenge the dominance of the big operators.
Alheri, holds a 3G license which enables an operator to engage in more data intensive applications and
the backers also have deep pockets.

Early and dominant operators provide a significant and sustained market-share advantage over later
entrants. Still, later entrants can succeed by adopting distinctive positioning and marketing strategies.
Experience has shown that in the Nigerian Telecoms market, innovations and financial muscles is a major
factor for acquiring subscribers.

Late entrant Globalcom is an example of such innovative spirits. Pioneers in most industries, once they
have reached the status of incumbent, are powerful. Sometimes, however, they get complacent or are
not in a position to cater to the growing or shifting demands of the marketplace. New entrants can take
advantage of gaps in the offerings of these aging pioneers, or find innovative ways to market their
product or service. Globalcom was able to break into the Nigeria Telecoms market easier because other
operators did not implement per second billing which should have slowed Globalcom’s race if already in
place as at that time.

While it is fine to be a dominate player in a Telecommunications starved economy like Nigeria but it
comes with a price of higher entry cost and product research. Late entrants do not need to go all the way
anymore. It cost less to imitate a product than start from the scratch and with a penetration that is still
less than 40 percent of the license under territory of 140 million people, there are still opportunities for
deeper market share.

For the late entrants to quickly find their voices in the competitive Nigeria Telecoms market, they need
to study the Mobile Value added services product portfolio offerings of the existing market leaders,
Market environment and positioning. Some basic strategic planning for service offering and Product
portfolio is for late entrants to look for new geographic (where possible) and segments for their
products. Presently, most Mobile value added service offerings of Dominant operators are focused on
mass and youth segment market and the chief products are entertainment based which do not offer
any real life benefits in any manner.

Strategic market entry plans for Telecoms late entrants include price reduction in an existing market. By
introducing a product at a lower price than Dominate Operators, a late entrant can attract new
subscribers who would not have otherwise signed for the service and in effect such a product ¬¬will lead
to an expansion in the total market. An operator can also subsidize low end phones to reduce entry cost
for people that ordinarily that might not be able to pay a lump sum for handset or even acquire one.

Product and service innovation with focus on a niche market, can help to establish late entrants as
dominant players. Companies can compete by being innovative in the marketplace. The innovation may
be radical or incremental. One example of incremental innovation is an enhanced version of an existing
product. The enhanced product can compete directly with existing products, or it can be positioned to
attract a smaller segment of the existing market. In addition, the improved product or service can
sometimes attract new subscribers that are not the current target for the existing product or service. For
example, Blackberry phones are currently without international language translations for emails and
Sms. All the unique selling points for Nigeria Mobile operators for BlackBerry phones is the email service
while neglecting the value added on for Blackberry, that has potentials to earn data revenue, change the
face of e-commerce interactions in Nigeria and also further differentiate the operators offerings of
Blackberry.

Late entrants can adopt the above to make in roads into the Nigeria Market but they should also be
mindful of the barrier set up of the dominant players with substantial research and development
investments, being early in the market are well positioned to stifle the growth of the new entrants.

Dominant operators like the MTN,Glo and Celtel in the GSM market and starcomms, Telkom-Muiltilinks
in the CDMA market had established a presence in the market place, build brand equity and created an
excellent distribution network. Also, a peculiarity of telecoms industry is that the quality of service is
primarily determined by coverage. Having evolved over time, the first entrant's(MTN) network usually
has much better coverage. The customers become used to enhanced coverage over time. So new
entrants have to invest significantly to achieve this same coverage, an effort that is capital intensive and
time consuming. All new networks have initial bugs that take time to fix. Subscribers are just not willing
to go through another learning curve, when there is already a robust supplier of service. Another
frequent constraint is access to property to build the towers, since the first entrants have already seized
the ideal sites for coverage but Visafone will be leveraging on the extensive branch infrastructure of
Zenith Bank to roll out while Alheri and Etisalat can opt for Co-location services of Helios Towers. But in
the absence of these bail outs, the late entrants may require to invest larger amounts in network
infrastructure to gain similar coverage. Given these hurdles, it can take two to three years before a
challenger achieves coverage competitive with the incumbent's.

In addition to coverage and related quality of service, another huge barrier to entry for new entrants is
the issue of number portability. The NCC has been making efforts and educating the dominate operators
on number portability since they will most likely serve as the donor network while the late entrant will
most likely be the recipient network. The success of number portability depends on the ability of the
donor network to perfect the processing of the subscriber in a turn around time or hence the subscriber
becomes frustrated while attempting to join another network while keeping his number.

The inherent advantages to being first in the Nigerian telecoms market are control of ideal sites;
freedom to evolve and fine-tune network coverage; building of brand loyalty by offering superior
customer service; locking in customers by subsidizing equipment for an extended period under fixed-
service contracts, and gaining control of key channels of distribution.
Late entrants do also have its own advantages if they are able to learn from the pit falls of the dominate
operators in offering a superior level of customer service, deploying new technology, so that a new
entrant can offer similar or better service at a lower cost, the new entrant may also develop a new way
to access the market, with an innovative distribution strategy and may simply be pricing aggressively,
targeting selected segments by taking advantage of the incumbent's tendency to average pricing across
all segments.

While the dominant operators do have their own advantages, so do the late entrants. They are coming
with latest technology and more knowledgeable about the end-user experiences of that particular
market. Examples abound of Telecoms operators that moved from late entrant position to dominant
players by getting it right. Orange, successfully established its self as a dominant player from a late
entrant in the British Market and Globalcom, did same too in the Nigerian Market.

I wish Visafone,Alheri,Etisalat and Nigomsat (If eventually awarded a license) an interesting journey into
the fastest growing telecoms market in Africa!

Marketing strategies serve as the fundamental underpinning of marketing plans designed to

fill market needs and reach marketing objectives.[2] Plans and objectives are generally tested for
measurable results. Commonly, marketing strategies are developed as multi-year plans, with a
tactical plan detailing specific actions to be accomplished in the current year. Time horizons
covered by the marketing plan vary by company, by industry, and by nation, however, time
horizons are becoming shorter as the speed of change in the environment increases.[3] Marketing
strategies are dynamic and interactive. They are partially planned and partially unplanned. See
strategy dynamics.

Marketing strategy involves careful scanning of the internal and external environments which are
summarized in a SWOT analysis.[4] Internal environmental factors include the marketing mix,
plus performance analysis and strategic constraints.[5] External environmental factors include
customer analysis, competitor analysis, target market analysis, as well as evaluation of any
elements of the technological, economic, cultural or political/legal environment likely to impact
success.[3][6] A key component of marketing strategy is often to keep marketing in line with a
company's overarching mission statement.[7] Besides SWOT analysis, portfolio analyses such as
the GE/McKinsey matrix [8] or COPE analysis [9]. can be performed to determine the strategic
focus.

Once a thorough environmental scan is complete, a strategic plan can be constructed to identify
business alternatives, establish challenging goals, determine the optimal marketing mix to attain
these goals, and detail implementation.[3] A final step in developing a marketing strategy is to
create a plan to monitor progress and a set of contingencies if problems arise in the
implementation of the plan.

[edit] Types of strategies

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Please help improve this article by adding reliable references. Unsourced material may be challenged and
removed. (June 2008)

Marketing strategies may differ depending on the unique situation of the individual business.
However there are a number of ways of categorizing some generic strategies. A brief description
of the most common categorizing schemes is presented below:

 Strategies based on market dominance - In this scheme, firms are classified based on their
market share or dominance of an industry. Typically there are four types of market
dominance strategies:
o Leader

o Challenger

o Follower

o Nicher

 Porter generic strategies - strategy on the dimensions of strategic scope and strategic
strength. Strategic scope refers to the market penetration while strategic strength refers to
the firm’s sustainable competitive advantage. The generic strategy framework (porter
1984) comprises two alternatives each with two alternative scopes. These are
Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow.
o Product differentiation (broad)

o Cost leadership (broad)

o Market segmentation (narrow)

 Innovation strategies - This deals with the firm's rate of the new product development and
business model innovation. It asks whether the company is on the cutting edge of
technology and business innovation. There are three types:
o Pioneers

o Close followers

o Late followers

 Growth strategies - In this scheme we ask the question, “How should the firm grow?”.
There are a number of different ways of answering that question, but the most common
gives four answers:
 o Horizontal integration

o Vertical integration

o Diversification

o Intensification

A more detailed scheme uses the categories[10]:

 Prospector
 Analyzer
 Defender
 Reactor
 Marketing warfare strategies - This scheme draws parallels between marketing strategies
and military strategies.

[edit] Strategic models

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Please help improve this article by adding reliable references. Unsourced material may be challenged and
removed. (June 2008)

Marketing participants often employ strategic models and tools to analyze marketing decisions.
When beginning a strategic analysis, the 3Cs can be employed to get a broad understanding of
the strategic environment. An Ansoff Matrix is also often used to convey an organization's
strategic positioning of their marketing mix. The 4Ps can then be utilized to form a marketing
plan to pursue a defined strategy.

There are many companies especially those in the Consumer Package Goods (CPG) market that
adopt the theory of running their business centered around Consumer, Shopper & Retailer needs.
Their Marketing departments spend quality time looking for "Growth Opportunities" in their
categories by identifying relevant insights (both mindsets and behaviors) on their target
Consumers, Shoppers and retail partners. These Growth Opportunities emerge from changes in
market trends, segment dynamics changing and also internal brand or operational business
challenges.The Marketing team can then prioritize these Growth Opportunities and begin to
develop strategies to exploit the opportunities that could include new or adapted products,
services as well as changes to the 7Ps.

[edit] Real-life marketing

Real-life marketing primarily revolves around the application of a great deal of common-sense;
dealing with a limited number of factors, in an environment of imperfect information and limited
resources complicated by uncertainty and tight timescales. Use of classical marketing techniques,
in these circumstances, is inevitably partial and uneven.

Thus, for example, many new products will emerge from irrational processes and the rational
development process may be used (if at all) to screen out the worst non-runners. The design of
the advertising, and the packaging, will be the output of the creative minds employed; which
management will then screen, often by 'gut-reaction', to ensure that it is reasonable.

For most of their time, marketing managers use intuition and experience to analyze and handle
the complex, and unique, situations being faced; without easy reference to theory. This will often
be 'flying by the seat of the pants', or 'gut-reaction'; where the overall strategy, coupled with the
knowledge of the customer which has been absorbed almost by a process of osmosis, will
determine the quality of the marketing employed. This, almost instinctive management, is what
is sometimes called 'coarse marketing'; to distinguish it from the refined, aesthetically pleasing,
form favored by the theorists.

[edit] See also

 Business model
 Customer engagement
 Market segmentation
 Pricing strategies

[edit] References
1. ^ Baker, Michael The Strategic Marketing Plan Audit 2008. ISBN 1902433998.
p.3
2. ^ Marketing basics Marketing strategy based on market needs, targets and goals.
3. ^ a b c Aaker, David Strategic Market Management 2008. ISBN 9780470056233
4. ^ Hausman Marketing Letter Definition of Marketing Series
5. ^ Aaker, David Strategic Market Management 2008. ISBN 9780470056233.
6. ^ http://www.marketingthatworks.tv/marketing-explained-in-short-easy-
words/definition-of-marketing-series-marketing-strategy.html MarketingThatWorks.TV
Marketing Strategy.
7. ^ Baker, Michael The Strategic Marketing Plan Audit 2008. ISBN 1902433998.
p. 27
8. ^ [1]
9. ^ COPE analysis explained
 10. ^ Miles, Raymond (2003). Organizational Strategy, Structure, and Process.
Stanford: Stanford University Press. ISBN 0804748403.

[edit] Further reading